National Health Act 1953 - Amendment declaration under subsections 85(2) and 85(2AA) - Amendment determination under subsection 85(2A) - drugs and medicinal preparations (No. PB 78 of 2007)

Administered by Department of Health, Disability and Ageing

Legislation au F2007L03942 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

INSTRUMENT NUMBER PB 78 OF 2007

NATIONAL HEALTH ACT 1953

AMENDMENT DECLARATION UNDER SUBSECTIONS 85(2) AND 85(2AA)

    AMENDMENT DETERMINATION UNDER SUBSECTION 85(2A)

Purpose and Operation

Part VII of the National Health Act 1953 (the Act) is the legislative basis of the Pharmaceutical Benefits Scheme (PBS) by which Commonwealth provides reliable, timely, and affordable access to a wide range of medicines for all Australians.

Subsection 85(1) provides that benefits are to be provided by the Commonwealth in accordance with Part VII in respect of pharmaceutical benefits.

Drugs and medicinal preparations in relation to which Part VII applies are declared by the Minister by legislative instrument as such under subsection 85(2). These are listed drugs as defined in subsection 84(1).  Part VII also applies to certain extemporaneously-prepared medicinal preparations as a result of declarations under paragraph 85(2)(b).

The Minister by legislative instrument can determine the form or forms of a listed drug by reference to strength, type of unit, size of unit or otherwise (subsection 85(3)); the manner of administration of the form of the listed drug so determined (subsection 85(5)); and a brand of the pharmaceutical item (defined in subsection 84(1)) that has the listed drug in that form with that manner of administration (subsection 85(6)).  These determinations govern (except for certain extemporaneously-prepared pharmaceutical benefits) what constitutes the pharmaceutical benefit (defined in subsection 84(1)) under Part VII of the Act.

Subsection 85(2AA) empowers the Minister, by legislative instrument, to revoke or vary a declaration under subsection 85(2) in relation to a drug or medicinal preparation. 

Where a revocation or variation would have the result that a drug or medicinal preparation would cease to be a listed drug, the Minister must under subsection 85(2AB) obtain the advice in writing of the Pharmaceutical Benefits Advisory Committee (PBAC).  Under subsection 85(2AC), this PBAC advice is to be tabled in Parliament with the relevant declaration under subsection 85(2AA).  Subsection 101(4) further provides that a drug or medicinal preparation cannot be declared under paragraph 85(2)(a) to be a drug or medicinal preparation in relation to which Part VII applies unless the PBAC has recommended to the Minister that it be so declared. 

This legislative instrument in giving effect to recommendations of the PBAC amends declarations under subsection 85(2) and determinations under subsection 85(2A) made by legislative instrument number PB 48 of 2007 which came into effect on 1 August 2007.  The amendments are set out in the items of Schedule 1 to the instrument.

A provision-by-provision description of the instrument is contained in the Attachment.

This instrument, expressed to commence on 1 November 2007, was made on 2 October 2007.

 


Consultations

The involvement of interested parties through the membership of the PBAC constitutes a formal and ongoing process of consultation.The PBAC is an independent expert body established by section 100A which makes recommendations to the Minister about which drugs and medicinal preparations should be available as pharmaceutical benefits.  PBAC members are appointed following nomination by prescribed organisations and associations from consumers, health economists, practising community pharmacists, general practitioners, clinical pharmacologists and specialists, with at least one member selected from each of those interests or professions.  Remaining members are persons whom the Minister is satisfied have qualifications and experience in a field relevant to the functions of the PBAC, and that would enable them to contribute meaningfully to the deliberations of the PBAC.  When recommending the listing of a medicine on the PBS, the PBAC takes into account the medical conditions for which the medicine has been approved for use in Australia, its clinical effectiveness, safety and cost-effectiveness compared with other treatments.


ATTACHMENT

Paragraph 1:  provides that this instrument commences on 1 November 2007.

Paragraph 2:  provides that Schedule 1 amends PB 48 of 2007.

Schedule 1: provides for the following amendments:

 

SUMMARY OF CHANGES

 

SCHEDULE 1

 

Listed Drug Added

Bortezomib

Imatinib

Tamarindus indica seed polysaccharide

 

Alteration of Streamlined Authority Code and Circumstances

Minoxidil

Strontium [addition of streamlined authority code and circumstance]

 

Alteration of Circumstances

Amino acids synthetic, formula [oral powder 400 g (EleCare)]

Docetaxel

Efalizumab [for the treatment of adult patients with severe chronic plaque psoriasis]

Etanercept [for the treatment of adult patients with severe chronic plaque psoriasis]

Glucose Indicator—Blood [addition of electrode strips, 50 (Optium Omega)]

Milk powder lactose free formula

Milk powder lactose modified

Perindopril with Indapamide [tablet containing perindopril erbumine 4 mg with indapamide hemihydrate 1.25 mg and tablet containing perindopril arginine 5 mg with indapamide hemihydrate 1.25 mg]

Vancomycin [addition of powder for injection 1 g (1,000,000 I.U.) (as hydrochloride)]

 

 

SCHEDULE 6

 

Listed Drug Deleted

Imatinib

 

Overview

The National Health Act 1953, enacted by the Parliament of Australia, establishes the Pharmaceutical Benefits Scheme (PBS), which ensures Australians have reliable, timely, and affordable access to a broad range of medicines. The Act enables the Commonwealth to provide pharmaceutical benefits by declaring certain drugs and medicinal preparations through legislative instruments. The 2007 amendment to the Act, specifically F2007L03942, refines the declarations and determinations concerning listed drugs, including the form, administration, and brand specifications, based on recommendations from the Pharmaceutical Benefits Advisory Committee (PBAC). The PBAC, an independent expert body, consults with stakeholders to assess the clinical effectiveness, safety, and cost-effectiveness of drugs before recommending their listing on the PBS. This amendment, effective from 1 November 2007, includes updates such as the addition of new drugs like Bortezomib and Tamarindus indica seed polysaccharide, modifications to existing drug listings, and the removal of certain drugs from the PBS. The legislative instrument underscores the importance of expert advice and stakeholder consultation in maintaining the integrity and efficacy of the PBS.

Scope and Application

The National Health Act 1953 Amendment Instrument PB 78 of 2007 amends the Pharmaceutical Benefits Scheme (PBS) as outlined in Part VII of the Act, providing a legislative basis for the Commonwealth to offer reliable, timely, and affordable access to a broad range of medicines for all Australians. The instrument applies to drugs and medicinal preparations declared as listed drugs by the Minister, as per subsection 85(2), and includes certain extemporaneously-prepared medicinal preparations. The Minister can further determine the forms, manner of administration, and brands of these listed drugs through legislative instruments. This instrument, which commenced on 1 November 2007, amends previous declarations and determinations made by legislative instrument number PB 48 of 2007, effective from 1 August 2007, with specific amendments detailed in Schedule 1. The Pharmaceutical Benefits Advisory Committee (PBAC) plays a crucial role in recommending which drugs should be listed on the PBS, considering factors such as clinical effectiveness, safety, and cost-effectiveness. The PBAC's advice is mandatory for the Minister when considering revocations or variations of drug listings.

Key Provisions

The National Health Act 1953, as amended by the legislation F2007L03942, primarily operates through its Part VII to administer the Pharmaceutical Benefits Scheme (PBS). Section 85(1) stipulates that the Commonwealth is to provide benefits in accordance with Part VII, specifically concerning pharmaceutical benefits. The Minister is empowered under section 85(2) to declare drugs and medicinal preparations that fall under the PBS through legislative instruments, listing them as defined in section 84(1). These declarations include certain extemporaneously-prepared medicinal preparations as per paragraph 85(2)(b). Furthermore, section 85(2AA) allows the Minister to revoke or vary these declarations through legislative instruments, subject to the advice of the Pharmaceutical Benefits Advisory Committee (PBAC) when such actions would result in a drug or medicinal preparation ceasing to be listed. The PBAC advice must be tabled in Parliament as per subsection 85(2AC). Additionally, section 85(2AB) mandates that the Minister obtain PBAC advice in writing before revoking or varying a declaration that would result in the cessation of a drug or medicinal preparation from being listed. Section 101(4) stipulates that a drug or medicinal preparation cannot be declared under section 85(2)(a) unless the PBAC has recommended it to the Minister. The Act imposes several obligations on the parties it governs. The Minister must consult with the PBAC, an independent expert body established by section 100A, when making decisions about which drugs and medicinal preparations should be included in the PBS. The PBAC is tasked with making recommendations based on factors such as the medical conditions for which a medicine has been approved, its clinical effectiveness, safety, and cost-effectiveness compared to other treatments. The Minister is also required to consider the PBAC's advice when revoking or varying declarations under section 85(2). Additionally, the Minister must ensure that any new declarations or variations comply with the recommendations of the PBAC, as stipulated by section 101(4). Failure to comply with the provisions of the National Health Act 1953 and its amendments can result in various penalties and consequences. While the explanatory statement does not explicitly list specific penalties, breaches of legislative instruments generally carry administrative, civil, or criminal penalties depending on the severity of the breach and the specific provisions involved. For example, non-compliance with declarations or determinations under the Act may lead to legal actions, fines, or other administrative penalties. In more severe cases, breaches could result in criminal charges, particularly if they involve fraudulent activities or deliberate non-compliance. The exact penalties would depend on the specific circumstances and the relevant laws governing such actions.

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